Federal Budget and Economy: TaxVox

Why Congress Will Borrow To Help Ukraine But May Pay For New COVID-19 Medical Costs With Offsetting Spending Cuts

Why is Congress prepared to spend billions of dollars for new aid to Ukraine without requiring offsetting tax increases or spending cuts at the same...
May 17, 2022Howard Gleckman
State and Local Issues: Research report

State Tax and Economic Review, 2021 Quarter 4

State Revenues Surged in the Fourth Quarter of 2021, but Continued Robust Growth Is Unlikely
Total state tax revenue collections increased 24.1 percent in nominal terms and 17.2 percent in real terms in the fourth quarter of 2021 relative to a year earlier. Although state revenue collections have grown rapidly in the most recent months and reported revenue growth is widespread across
May 17, 2022Lucy Dadayan
: Daily Deduction

A Holdout, A Dependency, And An Agreement

Poland is not yet on board with a global minimum corporate tax.
May 17, 2022Renu Zaretsky
: TaxVox

TCJA Led Foreign-Owned Corporations to Retain More Earnings in the US

Corporate tax reforms introduced by the 2017 Tax Cuts and Jobs Act (TCJA) encouraged foreign-owned US companies to reinvest more of their earnings here, according...
May 16, 2022Thornton MathesonThomas Brosy
: Daily Deduction

Death, Taxes, Fairness, And A Ponzi Scheme

What about taxing capital gains at a higher rate at death than during life?
May 16, 2022Renu Zaretsky
In FY 2020, federal estate and trust income tax collections totaled $33.7 billion, with 45% coming from Texas, New York, Nevada, Illinois, and Florida. Nevada’s share of the total (10%) was ten times its share of national population.
May 16, 2022
Individual Taxes: TaxVox

Taxing Capital Gains at Death at A Higher Rate Than During Life

President Joe Biden and Senate Finance Committee Chair Ron Wyden (D-OR) have proposed different ways to tax unrealized capital gains every year. Their shared goal...
May 13, 2022Steven M. RosenthalRobert McClelland
: Daily Deduction

Surpluses, Confirmations, And Tax Breaks

The US posted a $308 billion budget surplus in April.
May 13, 2022Renu Zaretsky
Business Taxes: Research report

The Impact of the Tax Cuts and Jobs Act on Foreign Investment in the United States

The 2017 Tax Cuts and Jobs Act (TCJA) sharply reduced effective corporate income tax rates on equity-financed US investment. This paper examines the reform’s impact on US inbound foreign direct investment (FDI) and investment in property, plant and equipment (PPE) by foreign-owned US companies. We
May 12, 2022Thornton MathesonAlexander KlemmLaura PowerThomas Brosy
: TaxVox

Inflation and Oil Price Spikes Revive Case for LIFO Repeal

The recent runup in oil prices and general inflation have boosted tax benefits from the “last-in, first-out” (LIFO) inventory accounting tax break. LIFO tax expenditures,...
May 12, 2022Thornton MathesonThomas Brosy
: Daily Deduction

Ukraine Aid Awaits, Last Call For The Expanded CTC

$40 billion in Ukraine aid awaits Senate action.
May 12, 2022Renu Zaretsky
: Daily Deduction

Inflation, Rocky Markets, Corporate Tax Incidence, and Cheesesteak

Biden: Whip inflation now.
May 11, 2022Renu Zaretsky
Individual Taxes: TaxVox

How Democrats Who Want To Tax The Very Wealthy Are Taking A Page From Thomas Paine

Did President Biden and other Democrats read 18 th century revolutionary Tom Paine before they proposed their taxes on extreme wealth? Hard to know, but...
May 10, 2022Howard Gleckman
Business Taxes: TaxVox

Rethinking the Incidence of the Corporate Income Tax

Debates about corporate income tax cuts follow a familiar script. Republicans claim that rank-and-file workers benefit . Democrats argue that affluent shareholders reap the gains...
May 10, 2022William G. GaleSamuel Thorpe
: Daily Deduction

Another Benefit Of CTC Payments; More IRS Woes

Expanded CTC payments helped reduce food insecurity.
May 10, 2022Renu Zaretsky
Business Taxes: Research report

Rethinking the Corporate Income Tax: The Role of Rent Sharing

Standard analysis of the corporate income tax assumes shareholders bear the burden of taxes on excess returns. But evidence shows that firms share rents with workers, especially high-income workers, which implies that these workers bear some of the burden as well. Using the Tax Policy Center
May 10, 2022William G. GaleSamuel Thorpe
Individual Taxes: Research report

Child Tax Credit Recipients Experienced a Larger Decline in Food Insecurity and a Similar Change in Employment as Nonrecipients Between 2020 and 2021

May 9, 2022Michael KarpmanElaine MaagStephen ZuckermanDouglas A. Wissoker
: Daily Deduction

Automated Filing, Tax Relief, And Sanctions

Study: IRS could prepare up to 48 percent of all tax returns.
May 9, 2022Renu Zaretsky
State and local governments spent $948 per capita on higher education in 2019, ranging from $563 in Florida to $1,565 in Delaware. These spending totals include revenue from governments and student tuition payments.
May 9, 2022
: Daily Deduction

Debt, Investments, The Future, And Decisions

GAO: Federal government debt is on an unsustainable path.
May 6, 2022Renu Zaretsky
: Daily Deduction

A TurboTax Settlement, An EU Minimum Tax

Intuit to pay $141 million settlement over its misleading ads for “free” filing.
May 5, 2022Renu Zaretsky
Federal Budget and Economy: Virtual Event

The Prescription: Fiscal Policy for Today's Economy with Brian Sigritz

Our guest this week is Brian Sigritz, director of state fiscal studies at the National Association of State Budget Officers. Many states are still looking...
May 5, 2022
Individual Taxes: TaxVox

The Elephant in The Room: The Gap Between Federal Retiree Benefits and Taxes Paid

President Trump was afraid to tackle the dominant set of spending and tax issues facing the federal government. Ditto, so far, for President Biden. Under...
May 5, 2022C. Eugene Steuerle
: Daily Deduction

Energy Taxes And Electric Vehicles

Did Joe Manchin just justify a carbon tax?
May 4, 2022Renu Zaretsky
State and Local Issues: TaxVox

In States’ Culture Wars, Tax Policy—And Taxpayers—Should Be Off Limits

Lately, some state policymakers are exerting their authority to punish businesses in their state that disagree with certain social policies. What happens when these two goals clash with one another? Or when they conflict with the vital job of collecting sufficient tax revenue to operate government and balance a budget?
May 4, 2022Renu Zaretsky